A short summer, inflation and recessionary conditions have impacted air-conditioner (AC) sales in the country driving market leader Voltas Ltd to downsize its earlier sales target of 1.2 million pieces for the current fiscal. The Unitary Products Business Group of Voltas Ltd that manufactures and markets air-conditioners will achieve sales of one million pieces this fiscal, according to Mr Pradeep Bakshi, COO, UPBG, Voltas Ltd.

Voltas Ltd, which saw a 50 per cent growth in fiscal 2010-11 over the previous year is witnessing a degrowth this year, as is the industry too, Mr Bakshi said.

The company however, with a current 22 per cent market share has achieved market leadership position.

Commenting on whether there would be a likely cut in prices of air-conditioners considering the lukewarm sales position of all brands, Mr Bakshi said that some brands were already discounting heavily due to inventory build-up, but Voltas would not opt for such a strategy.

The Indian AC market has estimated sales of about four million pieces a year. For Voltas, that sold about 7.5 lakh pieces last year, about 40 per cent of the contribution comes from North India, while the southern region contributes about 26 per cent, the West about 23 per cent and the East about 11 per cent. About 65 per cent of the sales comes from split air-conditioners and the rest from window ACs.

The Unitary Products Business Group (UPBG) is one of the three business divisions of Voltas limited that deals with ACs , commercial refrigeration and water coolers and dispensers.

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